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Job Growth in Austin Leads to Limited Rental Housing
Employers predict that their payrolls will increase by 25,000 this upcoming year. This enormous number is forecasted to strain the rental housing market in Austin. In 2006, rental housing vacancy fell 7.1%, and is expected to continue to decline in 2007 due to new construction falling short of consumer's demand. Asking rents are predicted to increase 3.2% to $817 per month, while effective rents also rise 5.3% to $756 per month. Developers are expected to build about 2,800 new units, which is about the same number as the previous year. According to the reports results, Austin is forecasted to report the 2nd highest employment growth rate in 2007, along with the 2nd highest population growth rate. The National Apartment Index, which ranks 42 major apartment markets in a series of indicators, places Austin at number 16, up seven places from last year. This case shows an example of how our economy directly effects the real estate market in a given region, for the better or for the worse. |
